Mayne Pharma Group Limited has rejected a notice from Cosette Pharmaceuticals seeking to terminate their scheme implementation deed (SID). The rejection follows the failure to satisfy a Foreign Investment Review Board (FIRB) condition precedent, a key hurdle in the proposed acquisition. Mayne Pharma is a specialty pharmaceutical company focused on applying its expertise to commercialise novel and generic pharmaceuticals. It offers patients innovative or improved medicines.
Cosette Pharmaceuticals initially notified Mayne Pharma that the FIRB condition had not been met and requested a period of good-faith consultation as stipulated under the SID. Mayne Pharma engaged in discussions with Cosette. However, these discussions did not result in an agreement that would enable the scheme to proceed as originally planned.
Following the close of market trading on December 9, Cosette issued a formal termination notice. Mayne Pharma, in consultation with its advisors, has thoroughly reviewed the termination notice and has determined it to be invalid. The company argues that Cosette failed to fulfil its obligations under the SID. Mayne Pharma believes this failure materially contributed to the FIRB condition not being satisfied.
Mayne Pharma has stated that it reserves all its rights concerning any failure by Cosette to perform its obligations as outlined in the scheme implementation deed. The company is assessing its options in light of these developments.
